This week, the GOP is considering a bold plan to transform the U.S. economy: a return to the gold standard. Most economists are highly skeptical about what it would do to the economy. But how it would impact the average taxpayer? Here's a look at what it means -- and how it would affect you.
Earlier this year, the Utah state legislature passed a law making gold and silver coins legal tender. Now, a Salt Lake City-area numismatist hopes to set up a depository system that will allow Utahans to use gold and silver to pay for anything they want.
For the past two years, the relationship between the dollar, stocks and gold was strong. When the dollar dropped, stocks and gold rose, and vice versa, nearly all the time. But since New Year's Day, that link has completely vanished, which is terrible news for the gold bugs.
According to two Paul supporters, the Texas Republican isn't ready to go directly back to the gold standard. Instead, he wants to keep the dollar and add three more currencies. Those would be based on gold, silver and copper.
Republican Ron Paul is going to have a great time making the Federal Reserve miserable once he takes over as chair of the House subcommittee that overseas it. But he's off-target in at least seven points of criticism he levels at Bernanke & Co.
For a host of reasons, other countries would love to free their economies from the stranglehold of the U.S. dollar's influence, especially now, when the Fed's stimulus actions are pushing the dollar lower, and everything else higher. Global finance expert Peter Cohan has a simple answer: The Mondo.
